Steve Dean

Southwest DC Waterfront is a wonderful example of mid-century American architecture, much of Southwest was redeveloped in the 1950-1960s. The neighborhood offers everything from small studio apartments to large townhouses and palatial apartments with water views.

The residential area of Southwest DC is bounded by South Capitol Street to the east, 14th Street to the west, the Southeast-Southwest Freeway to the north, and Washington Channel to the south.

Here are the figures:

Currently For Sale:  55 homes (current asking price)
Low:   $115,000
High:  $899,900
Average: $322,416

Under Contract:  26 homes (asking price at contract)
Low:  $109,900
High:  $539,900
Average:  $313,387

Sold since 1/1/2009 43 homes sold (final sales price)
Low:  $90,000
High: $750,000
Average:  $267,470

Average asking price for sold properties: $282,137

When you're working with same-sex couples as a REALTOR, are you talking to them about how they will hold title? The law in the District of Columbia has been evolving rapidly in the last year. Are you aware of their options?

Most agents should be familiar with the options: tenants in common, joint tenants, and tenants by the entirety. With tenants in common, the interests of the deceased pass through probate. With joint tenants, the surviving owner has a right of survivorship; the interests pass outside a will. With these two types of tenancy, either owner can sell his or her share without the consent of the other owner.

Tenants by the entirety also passes outside a will; each owner is seen to own the property in its entirety. Hence an owner cannot unilaterally sell his or her share of the property. Tenants by the entirety can also shield the property from the debts of a deceased spouse.

In Washington, DC domestic partners have been able to hold title as tenants by the entirety since 2008 with the passage of the "Omnibus Domestic Partnership Equality Amendment Act of 2008." (see my earlier blog post: http://activerain.com/blogsview/547297/district-of-columbia-expands-right-of-benefits-of-domestic-partnerships)

Beginning July 7, 2009, Washington, DC will recognize marriages performed outside Washington, DC between same-sex couples. The "Jury and Marriage Amendment Act of 2009" updates DC law as follows:

“Sec. 1287a.  Recognition of Marriages from Other Jurisdictions. - A marriage legally entered into in another jurisdiction between 2 persons of the same sex that is recognized as valid in that jurisdiction, that is not expressly prohibited by sections 1283 through section 1286, and has not been deemed illegal under section 1287, shall be recognized as a marriage in the District.”

A quick conversation with clients about their options on holding title is prudent. As soon as settlement is scheduled, referring the couple to a settlement attorney to answer questions regarding holding title gives the couple time to discuss the options themselves and saves them from having to make an instant decision at the settlement table. 

The settlement attorney, too, may need some time to become current on changes in DC law as it affects domestic partners and same-sex married couples. Many settlement attorneys will have to check with their title insurance underwriters to ensure that they have prepared the deed properly and that the title insurance couple will insure the deed.

The sooner this discussion is started, the better.

Historically, cooperatives have been exempt from paying a transfer and a recordation tax upon sale.

Beginning October 1, 2009, the transfer of shares in a cooperative will be taxed by the District of Columbia. The current tax rate is 1.45% of the sales price for cooperatives selling for $400,000 or more. If the price is under $400,000, the tax is 1.1% of the sales price.

Even if you're not planning to sell your unit, you could be subject to the transfer and recordation tax if you plan to add someone to your shares after September 30, 2009. 

Adding someone to your shares is not subject to the transfer and recordation taxes if your the relationship is husband and wife, parent and child, grandparent and grandchild, or domestic partners, as defined in 32-701(3) and there is no consideration (i.e., money or something of value) exchanged.

If you're considering adding someone to your shares and your relationship is outside one of those listed, acting before October could save you a significant amount of transfer and recordation taxes.

There could be income tax or capital gains tax implications, and it would be prudent to consult with your tax advisor.

The facade has begun to be attached to the west building at Waterfront Station as the photograph below shows.

Waterfront Station is a 2.5 million square foot mixed-use revitalization in the heart of Southwest Washington, DC. Located at M and 4th Streets SW, the site is right at the Waterfront-Southeastern University Metro Station and near the Southwest waterfront. 

Waterfront Station replaces the old Waterside Mall that was demolished in 2008.

More information about the new Waterfront Station is available on the developer's website:http://www.waterfrontdc.com/project/